Senate Passes Controversial Energy Bill, Boosting Fossil Fuels and Cutting Clean Energy Subsidies

The U.S. Senate recently passed a major energy bill that reshapes the nation’s energy landscape by expanding fossil fuel production while significantly reducing support for clean energy initiatives. The legislation, championed by Senate Majority Leader John Thune (R-S.D.), doubles down on Republican priorities to slash tax breaks for wind and solar projects while introducing new incentives for oil, natural gas, and coal industries.
Fossil fuel advocates celebrated the bill as a victory for energy dominance, citing provisions that unlock oil and gas development on public lands and ease environmental reviews for new infrastructure. However, clean energy advocates warned that the legislation could slash power generation capacity by 300 gigawatts by 2035, threatening grid reliability and driving up electric bills.
The bill also includes stricter rules on the use of foreign components in renewable projects, raising concerns about the viability of solar and wind projects. While it extends tax credits for some clean energy projects, the timelines for eligibility have been shortened, leaving many developers uncertain about future investments.
The legislation faces an uncertain future in the House, where Republican budget hawks have criticized its potential to balloon the federal debt. With no Democratic support, House Speaker Mike Johnson (R-La.) must navigate internal divisions within his caucus, as some members have labeled the bill a “deal killer.”
The bill reflects the Trump administration’s broader push to expand fossil fuel infrastructure, including new natural gas plants and pipelines, while rolling back regulations on greenhouse gas emissions. Environmental groups and clean energy advocates warn that the legislation will exacerbate climate challenges and harm U.S. competitiveness in the global energy market.

Published: 7/2/2025